End of last year, we reported that the Chinese government was publicly thinking about new regulations to shift a large chunk of cars bought by the government to home-grown brands. We are talking about a serious amount of money here. The government is the biggest customer of cars in China, with an annual budget of around $15b. Government purchases influence the whole market. To buy Chinese. Read More >
Japan’s domestic car trade can look back at the first up year in seven years. Japan goes by the fiscal year, which spans from April 1 in the current year to March 31 in the next. In the 2009 fiscal, domestic sales of new vehicles rose 10 percent on the year. You think that’s an occasion to head down to your favorite Ginza hostess bar, break out the sake, or stronger stuff, and party like it’s 2003? Chigaimasu. Quite the opposite is true. The land of the rising sun is worried about falling sales. “A strong sense of anxiety continues to grip the industry,” reports The Nikkei [sub]. Read More >
On April 5, the NHTSA levied their largest civil penalty in recorded history. $16,375,000 against Toyota, because “they knowingly hid a dangerous defect for months from U.S. officials and did not take action to protect millions of drivers and their families.” When we reported that, people thought Toyota would just appeal and drag it out. Not so easy, said The Nikkei [sub]. Toyota is between a rock and a hard place: “Admitting to the charge could strengthen the cases of car owners suing the firm, while refuting it risks inflaming U.S. public opinion.” Toyota found a way out. Read More >
Toyota received another invitation to join a little congressional chit-chat, reports The Nikkei [sub]. On May 6th, a U.S. House panel will hold a hearing to “further examine Toyota’s inquiry into potential electronic causes of sudden unintended acceleration,” as the invitation letter from Henry Waxman to James Lentz, president of Toyota U.S. says. The presence of Lentz is requested at the hearing. Read More >
Well, apparently, someone at Toyota shouted “yatta” (I found it) too early when they said that the GX 460 troubles will be solved with a simple reflash. As Robert Walter put it so succinctly: “Even God’s Own Motor Company couldn’t approve and roll-out a minor change from one day to the next …” A day later, Toyota agrees with Robert. The Nikkei [sub] has the news that production of the Lexus GX 460 will be halted through the end of the month. And the troubles are just beginning … Read More >
US District Court Judge James B. Zagel on Wednesday unsealed documents filed in the case against former Illinois Governor Rod R. Blagojevich (D). The 91-page document lays out in greater detail the evidence in the prosecution’s corruption case against a man charged with using his office to line his own pockets. One of the central money-making schemes alleged is a multi-billion deal to install High Occupancy Toll (HOT) lanes inside an existing toll road. Blagojevich announced the program in 2008.
It seems like the Chinese government is getting worried a bit about what Greenspan would have called „irrational exuberance“ in the Chinese auto market. If Greenspan would have worked for the Chinese. Would have been interesting. Anyway … Read More >
You may not know that Cammy is a Chemist by trade. With a degree at college and university. If you bug me, I know enough to blow you up. That aside, in chemistry, there is a theory called “Le Chatelier’s Principle”. It states that:
“If a chemical system at equilibrium experiences a change in concentration, temperature, volume, or partial pressure, then the equilibrium shifts to counteract the imposed change and a new equilibrium is established.”
Now why am I telling you this?
The BBC reports that Daimler is deserting Iran. Read More >
Voters in California’s tenth largest city will have an opportunity to ban red light cameras in November. On Tuesday, the Anaheim City Council unanimously endorsed the idea of placing a charter amendment on the ballot that, if approved by the public, would ensure that automated ticketing machines never appear on city streets. Mayor Curt Pringle, a former speaker of the California State Assembly, offered the measure even though his city has never used cameras.
More and more Americans have recently detected that they have a rich uncle in Japan. The uncle’s name is Toyota. From LaHood to a bevy of lawyers, all have a yen for Toyota’s money. Latest (but surely not last) to join the fray: State Farm. You know, that same insurance company that had disclosed all those claims to NHTSA and never received an answer. They went public with the story a few days before the congressional hearings. Now we know why: Like a good neighbor, State Farms wants its money back.
“Armed with reports of accidents for which they’ve already paid claims, State Farm insurance has asked Toyota to repay them for any crashes related to unintended acceleration by its vehicles,” reports USA Today. The request for a little Farm Aid is just the beginning.
Other insurance companies are expected to – make that will follow and ask for money. In the trade, this is called “subrogation.” No, it’s not a kinky sex practice. Read More >
According to the latest Rasmussen telephone polling [via The Financial], 48 percent of Americans believe that the government’s ownership stake in GM and Chrysler means it has a conflict of interest in regulating competing automakers. 25 percent disagree, saying that the government’s bailout doesn’t affect regulation, and another 26 percent aren’t sure. When it comes to recent criticism of Toyota by administration officials like Transportation Secretary Ray LaHood, only 25 percent believe the criticism stems from a desire to help GM, while 38 percent disagree and 37 percent aren’t sure. But the polls most interesting results have nothing to do with politics, and everything to do with perception:
Despite Toyota’s major safety recalls, owners of its cars are still more loyal than those who drive cars made by the bailed-out GM. Sixty-four percent (64%) of Americans who currently own a Toyota say they are at least somewhat likely to buy their next car from the troubled automaker, compared to 57% of GM drivers who say they are at least somewhat likely to buy their next car from GM.
Citizen activists are looking to ban red light cameras and speed cameras in Maryland, Ohio and Texas. Petition drives are under way in six cities with the goal of offering local residents the opportunity to vote in the next election on whether automated ticketing should continue or not. Already, one of these efforts has succeeded.
Although independent studies have shown a link between the use of photo enforcement equipment and a statistically significant increase in the number of collisions, opponents of photo radar have produced few concrete examples of these incidents. In Arizona, the group CameraFraud.com has begun using freedom of information laws to get its hands on examples of accidents that would not have happened but for the presence of a speed camera van (view studies).
Japan’s Ministry of Economy, Trade and Industry is electrified. They think, next-generation automobiles will make up as much as half of the new passenger cars sold in Japan in 2020, says The Nikkei [sub].
By 2020, the ministry aims to have 2 million household chargers for electric vehicles installed, along with 5,000 fast-charging stations for commercial fleets. The ministry promotes joint development of infrastructure projects between the government, industry and academia to help pave the way for Japan to become the world’s most electrified nation.
People who make cars for a living have a more conservative outlook. Privately, they think the ministry should lay off the sake. Read More >
Free market economics are a simple process. Or so they say. Dive in, and whoever survives, survives. Let the market decide. According to the pure tenets of free market economics, it’s important that the government shows no favoritism. Yeah, right.
The Korea Times reports that President Lee Myung-Bak is showing more than just interest in Hyundai-Kia. Read More >
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